Can the housing market survive...

ess0two

Its Sat night,i'm on my 6th can of red stripe,the 100 top ibiza dance anthems are on mtv dance,deends whether thats your era.

relax...........

System

ess0two wrote: »

Its Sat night,i'm on my 6th can of red stripe,the 100 top ibiza dance anthems are on mtv dance,deends whether thats your era.

relax...........

Hah, I've just gotten back from the pub myself, c'mon people it's Saturday night, surely you have better things to be doing.

Except for the bears anyway, we know you don't have anything better to be doing

1echidna

Have we reached a consensus then? No. Surprise, surprise we have all got different crystal balls. Me, I broke mine on the way to the fridge so I just don't know, but have a pint or whatever on me. :beer:

ess0two

1echidna wrote: »

Have we reached a consensus then? No. Surprise, surprise we have all got different crystal balls. Me, I broke mine on the way to the fridge so I just don't know, but have a pint or whatever on me. :beer:

Yeah, sash ecuador top anthem.

Thrugelmir

As long as people can afford to pay their mortgages. Then the value of the property or whether they are in negative equity has no relevance.

In the boom of the late 80' early 90's. My 3 bed end link detached house , went from a purchase price of £88k to a peak ( based on next door selling) of £125k , to a selling price of £88.5k in a 5 year period.

As we had no family and continued to pay down the mortgage and save. Also salary increased in that 5 years. At the point of selling we were able to buy a 4 bed detached village location for £165k.

If prices hadn't of dropped. We'd never been able to bridge the gap. As at the peak the differential was too wide.

All markets gradually fall back into equilbrium after a peak. At the moment until confidence returns there are too many uncertainities.

1. Stability of employment
2. Where are interest rates going to settle at
3. How much property is being rented rather than sold
4. Effects of taxation rises
5. Like the Irish have imposed - will the next Government introduce limits on interest allowable on BTL against rental income.
6. How many BTL investors will cash out if interest rates rise steeply.
7. Affordability for FTB's

This is set of circumstances never experienced before. Either we shall have an orderly return to a stable market or a domino effect which causes prices to spiral downwards as each of the above come into play.